When Edward Schaefer, a motorcyclist with a long record of driving drunk, killed a 9-year-old girl and maimed her father in a Novato crosswalk, his sentence was as severe as the law allowed - 24 years to life in prison for second-degree murder, and $1.36 million in restitution to the victims' family.

Less than two weeks after he arrived at San Quentin in July 2010, Schaefer was fatally stabbed by another convicted murderer who said later he had been avenging the girl's death.

On Wednesday, the First District Court of Appeal in San Francisco reluctantly nullified all aspects of Schaefer's sentence, including the restitution order. The ruling was compelled by state law, the court said, because Schaefer's appeal of his convictions was still pending at the time of his death.

There are "strong policy arguments" in favor of changing the law that the Legislature may wish to consider, Justice Patricia Sepulveda said in the 3-0 ruling.

The ruling may not have much practical effect, because the family has a damage suit pending against Schaefer's estate and is also suing the city of Novato, claiming the intersection was unsafe.

But it was at least a symbolic blow to the father, Aaron Osheroff, who lost his right leg in the 2009 accident and underwent another operation several weeks ago.

Osheroff campaigned to toughen the state's drunken driving laws in the aftermath of the accident. He and his family had no comment on the ruling, said their lawyer, Walter Walker.

Schaefer, 43, of Novato, had at least eight previous drunken driving convictions and was drunk when he sped past a stop sign at more than 60 mph in May 2009, slamming into Osheroff and his daughter, Melody, as they were crossing the street. She was fatally injured.

As required by state law, Schaefer's sentence had included an order to compensate his victims. Marin County Superior Court Judge Terrence Boren ruled last year that the $1.36 million restitution order remained in effect.

But on Wednesday, the appeals court said such an order "requires a conviction for a crime that caused the victim's loss," a conviction erased by Schaefer's death during his criminal appeal.

While no longer entitled to automatic compensation from Schaefer's estate, the Osheroff family can still seek damages from the estate and the city in the civil suit.

John Walovich, a lawyer for Schaefer's estate, said Thursday its assets were "not very large." But Walker, the Osheroff family's attorney, said he believes the estate is hiding some of its property.

Walker said the family's suit against Novato contends that the crosswalk at San Marin Drive and San Carlos Way was dangerous because the view was obscured by a hill and parked cars, forcing pedestrians to enter the street to see oncoming traffic. After the accident, he said, the city added a second crosswalk across the street, giving pedestrian more time to react to drivers coming over the hill.

Dirk Larsen, a lawyer for the city, said there was nothing unsafe about the intersection, which had no previous history of accidents involving pedestrians. "This horrible tragic accident was caused by nothing other than reckless criminal conduct," he said.